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"I don't follow your logic here."

The logic is quite simple. If the demand for US produced goods increases, producers will increase production to meet the demand. In most cases that means hiring more people, in some cases, it means building more capacity (which results in even more jobs).

In that regard, a study done by Princeton econometrics a few years ago is instructive. Senior executives of foreign multi-nationals were asked how their strategic plans would be affected if the US were to convert their tax system to a consumption based system similar to the FairTax. Something like 75% said they would build their next plant here and roughly 20 - 25% said they would relocate their corporate HQ here.

Furthermore, when Daimler/Benz and Chrysler merged a few years ago, one of the Daimler/Benz board members was asked about the decision to base the merged company in Stuttgart. His reply was that they had wanted to locate
their HQ in the US, but when they looked at the tax implications, it became obvious that that wasn't a financially sound decision.

The board members of other merging/acquiring companies have reported that a disproportionate amount of time and resources are devoted to figuring out the tax implications of business strategies, leaving less than desired time to analyze the markets, look at redundencies, evaluate the competiton and figure out the best ways to serve customers. If we had a simpler, fairer tax system, those corporate leaders would have a great deal of human resources and intellectual capital freed up for more productive and substantive pursuits.